DBRS Confirms Rating on Halifax Receivables Trust

DBRS Limited (DBRS) confirmed its rating on the following notes (the Notes) issued by Halifax Receivables Trust (the Trust) as part of DBRS’s continued efforts to provide timely credit rating opinions and increased transparency to market participants:

-- Line of Credit Receivables-Backed Class A Notes, Series 2015-1 at AAA (sf)

The rating confirmation is based on the performance of the transaction as of May 2019:

(1) The level of credit enhancement provided by 17% subordination, excess spread and the cash reserve account, which could build up to 2.0% of the initial invested amount if excess spread drops below 0.55%.

(2) The gross yield, net loss rate and payment rate have been stable, averaging 6.8%, 1.8% and 7.2%, respectively, since October 2013, when the first series was launched.

(3) The experience of The Bank of Nova Scotia (rated AA with a Stable trend by DBRS as of April 26, 2019) to manage a large, well-diversified, unsecured line of credit portfolio.

The performance and characteristics of the custodial pool and the Notes are available and updated each month in the Monthly Canadian ABS Report available at www.dbrs.com. DBRS conducts a monthly stress testing of each rated class of the Trust, the results of which indicate that simultaneous declines in yield and payment rates as well as increased losses would not result in the Trust’s failure to repay the Notes on a timely basis. The severity of the tests is commensurate with the rating on the Notes.

Notes:
The principal methodology is the Master Canadian Structured Finance Surveillance Methodology (June 2019), which can be found on dbrs.com under Methodologies & Criteria.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrs.com.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada